Even though Hodlnaut’s creditors are banking on the company’s bankruptcy, the founders are trying to save the business and sell it to potential investors.
The founders of troubled cryptocurrency lender Hodlnaut are trying to save the business despite creditors insisting on bankruptcy.
On 28 December, Hodlnaut’s interim directors issued a sixth certificate to Hodlnaut founder Simon Lee, with news that the company’s founders had proposed selling the business as a better option for creditors than winding up the company.
Lee said he and another Hodlnaut co-founder, Zhu Juntao, have approached several “potential white knight investors,” according to a Bloomberg report.
Lee reportedly wrote that Hodlnaut’s founders are confident that the company’s user base “can embrace digital asset platforms owned or affiliated with such investors.” According to him, such a trade agreement would “increase” the size of the creditors.
The confirmation also confirms that Hodlnaut is willing to sell the company as the company works with several potential investors to sell its business and other assets. A number of potential buyers are reportedly interested in purchasing Hodlnaut and its claims against the FTX crypto exchange that collapsed in early February.
The news comes shortly after Hodlnaut’s top creditors, including the Algorand Foundation, rejected a restructuring plan in January that would have allowed current directors to oversee the company’s operations during the restructuring phase. Creditors argue that restructuring will not help and that a better option is to sell the company’s remaining assets.
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As of December 2022, Hodlnaut Group owes $160.3 million, or 62% of outstanding debt, to companies and entities such as Algorand, Samtrade Custodian, S.A.M. FinTech and Jean-Marc Tremeaux.
Once a major crypto-lending platform, Hodlnaut was forced to shut down operations in August 2022 due to a lack of liquidity caused by the 2022 bear market. Hodlnaut’s operations were also hampered by the company’s significant exposure to the Falling FTX exchange, including the company it owns. that. more than 500 Bitcoins
BTC
tick down
$21,494
stuck on Sam Bankman-Fried’s crypto exchange.
The news comes amid another troubled crypto lender Voyager Digital’s Dec. 28 customer vote on a restructuring plan for Binance’s U.S.-based business, Binance.US. In December 2022, Binance.US announced that it would buy Voyager’s assets for $1.02 billion.
